The IRS has released (Notice 2024-80) the updated retirement plan contribution limits for 2025, including a new significant additional 401k catch-up contribution for those 60 to 63 years old.
401k Plans
The maximum amount individuals will be able to contribute to their plans is $23,500. The amount was previously $23,000 in 2024 and $22,500 in 2023. The limit applies to those who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan. The catch-up contribution limit remains at $7,500 for individuals over 50 years old. Additionally, those who turn 60, 61, 62, or 63 during 2025 are allowed an increased catch-up contribution of $11,250 for a total allowed contribution of $34,750.
SIMPLE, Solo 401(k), and SEP Plans
For SIMPLE retirement accounts, the maximum amount individuals will be able to contribute is $16,500 (previously $16,000), with the catch-up contribution limit for those 50 and older increasing to $3,500. For Solo 401(k)s and SEP plans, the contribution limit will be $70,000 (previously $69,000).
IRAs
The maximum amount individuals will be able to contribute to their IRAs remains at $7,000. The catch up contribution limit also remains at $1,000 for individuals over 50 years old.
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